Vietnamese natural rubber exports hit lowest level in 4 years

Mr Thuan noted that in the first four months of 2017 combined foreign sales declined 2.1% in total value compared to the same period in 2016, which represents a continuation of the steady decline in sales over the past four years. The World Factbook reports that for the four-year period 2012-2016 Vietnamese exports of natural rubber plummeted 63.8%, tallying in at just US$904.1 million in 2016. This compares to worldwide sales of US$4.4 billion for Thailand and US$3.4 billion for Indonesia in 2016, the two top global exporters of natural rubber and essentially places Vietnamese exporters as a group in a virtual tie with their counterparts from Malaysia and Côte d’Ivoire for third place. Mr Thuan was quick to point out that the slowdown of the global automotive industry and declines in the cost of oil had contributed significantly to a drop in the selling price of rubber during the first four months of 2017. He said the price on the global market had been hovering in the US$1,600-US$1,700 per metric ton range in March and April down from an averageUS$2,400 in January and February. Mr Thuan added that a surplus of rubber in Thailand had also been a contributing factor putting downward pressure on the sales price. The Association recently approached the Prime Minister with a list of proposals aimed at throwing a lifeline to the segment, said Mr. Thuan. Chief among them was a pitch for the government to declare the segment exempt from the value-added tax. Since…